Promoting and facilitating foreign direct investment for sustainable development: Analysing the sustainable development orientation of Asian-Pacific LDCs and LLDCs IIAs

Foreign investment, especially FDI plays an important role in economic development at national and international levels (Alfaro et.al., 2006). As illustrated in chapter 1 of this volume, Asian-Pacific countries have become a major destination and source of global FDI (ESCAP, 2019). While FDI helps promote the economic development of the recipient countries, FDI associated activities may also give rise to sustainable development challenges (Hindelang and Krajewski, 2016). Such challenges could be particularly profound in those developing countries that do not have a sound legal system, strong law enforcement and high level of investment governance. To many countries, how to reconcile and harmonize the two seemingly conflicting goals in investment governance, i.e. promoting FDI and pursuing sustainable development, has quickly become a pressing concern.

Sustainable Development Goals:

Industry, Innovation and Infrastructure